Sean Quinn, once Ireland's richest man, has been declared bankrupt in the Republic and could now be barred from trading for the next 12 years.

The judgment by the high court in Dublin represents a victory for the state-owned Irish Bank Resolution Corporation which sought to have Quinn bankrupted in Ireland. The bank was created out of the ruins of Anglo Irish Bank, the financial institution that loaned billions to property speculators during the Celtic Tiger boom but crashed in the recession.

Quinn had originally said he intended to challenge the issuing of a bankruptcy summons. But on Monday morning a solicitor acting on his behalf said he was withdrawing that challenge. The solicitor also told the court that Quinn was not opposing the bank's bankruptcy application. The Fermanagh businessman was not in court.

The bank brought the application on the back of orders by the commercial court directing Quinn to repay loans of more than €2bn (£1.6bn). Lawyers for the bank said Quinn's main centre of interest was in the Irish jurisdiction. Quinn's affairs now come under the control of a court-appointed official and he will have to submit a statement of affairs to him.